Thread: *INVESTING: Land or houses?

Originally Posted by AnonymousGuy

Via advice from this message board, I'm now leaning toward begin my real estate career as an investor. One thing that's had me scratching my head lately, is what's better to invest IN?

I see you haven't gotten the CD's yet? There's a wealth of info in those CD's I was telling you about.

+ Houses are something people can physically see, and picture their belongings in. Thus, it seems as though houses would be much easier to sell.

Yes, single family residential. Not duplexes, not quads, etc. Just start out with single family residential.

+ However, land seems like VERY little labor is required, and the money can be similar, if not more.

*So what should I invest in to begin my career? Land or a house? Keep in mind, I plan on studying the business a bit more and educating myself before I dive into anything officially. But what do you guys think, and what has a better success rate? Land just seems like a lot less work... What are the drawbacks, if any??

A big no on the land.

Cons:
* Investor loans are less flexible for land.
* You cannot write off the interest on the loan for land.
* You cannot write off hazard insurance for land because there's no dwelling to insure.
* Vacant land usually becomes a dump site for illegal dumping.
* Wisest land purchase is much harder to sell than the wisest SFR purchase. As of today, there are 4,432 single family residential listings and 1,799 land listings on my real estate firm's site. The daily average of home sales is 20, while the daily average of land sales is 2. Where do you think you'd be better off?

Pros:
there are none.

Your first move as a new investor should be SFR, land would suck. If you are in this for "less work" - give it up now. If you are in this for the love of money - give it up now. Investing is hard work - at least in the beginning. There's no get rich quick scheme with a focus on less work. And I've never seen anyone get rich, stay rich, and choose to be happy who also has a love of money.

Best wishes.

It would be wiser if you invest on houses. if you need help on investing, visit us, and we will guide you.

I agree, houses are better to get started. It is easier to get financing, and you can rent out the houses for a positive cash flow if purchased correctly. Land is more of a buy and hold, and it costs money to keep it. Unless you can flip it quick or have a lot of money, the cons of owning land outweigh the advantages (in my opinion, of course).

Single family homes are usually the easiest to get financed and to manage, but if you understand your City's rental inspection codes then I would suggest also comparing multi-unit properties, up to 4 units. Over 4 units and you move in to commercial, so be cautious.

i think this depends upon your interest. If you want to go for property investing then i will suggest first make a detail research on latest property trends in your area.

property & real estate portals in your area are the best way to find latest investing trends. So, make a detail plane according to your interests and go accordingly. Good luck